Open AccessExternal debt and economic growth in Tunisia
Author(s) -
Samir Abdelhafidh
Publication year - 2014
Publication title -
panoeconomicus
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.289
H-Index - 14
eISSN - 2217-2386
pISSN - 1452-595X
DOI - 10.2298/pan1406669a
Subject(s) - economics , presidency , debt , distributed lag , external debt , monetary economics , period (music) , autoregressive model , econometrics , macroeconomics , political science , physics , politics , acoustics , law
This paper investigates the external debt effect on economic growth in Tunisia. Our empirical methodology is based on the autoregressive distributed lag approach. We find that in the long- as well as in the short-run, external debt had a negative effect on growth over the 1970-2010 period. The longrun effect was slightly higher in the period before the Ben Ali’s presidency than in the period after. However, during his period, the external debt short-run effect was the double of that observed during the period before. These results suggest that an external debt reduction should favor economic growth in Tunisia